UKNM: RE: Credit Card Fraud

[Ian Tester]

Robin Edwards <

robinclockworx [dot] co [dot] uk

> wrote:


"I did read of one system that apparently uses a special technique to give 

merchants a scoring for a potential transaction, based on the information 

presented (e.g. name and address as well as CC details) then leaving the 

merchant to choose whether or not to proceed with the transaction. The fact 

that the company said it couldn't explain how it worked because that was 

their USP put a big question mark over it for me though."


I know that CyberSource (www.cybersource.com) have their own proprietary

system that looks for things like web-based email, time of day, gender,

discrepancies between delivery & billing address, frequency of purchase

attempts etc etc etc .  . this process kicks in after the card has been

Authorised by the merchant, and uses algorhythms to build a cumulative

"fraud likelihood score" which you can then set at a certain level to accept

or decline the card. I'm sure some of the other providers have a similar

system.


I also read in a Jupiter report of one majorish online retailer that's so

concerned about fraud that they delete 28% of their Customer Orders from

their database - sounds like a lot of work. The address verification thing

would be a total bonus in Europe, but can work pretty well for the US . . .


BTW, have you seen that Fletcher Research has been acquired by Forrester?


i


Ian Tester, Business Development - boo.com

boo.com Group Ltd, 5-7 Carnaby Street, London W1V 1PG

M +44(0)7880 557692 F +44(0)20 7950 0951 E

ian [dot] testeruk [dot] boo [dot] com

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